Re: st: sample selection with bivariate probit

["Erik �. S�rensen" <sameos@mac.com>]

Just so this is fully clear to me: The model you want has 4 equations

ln w_a = b1x1 + e1   wage-offer abroad
ln w_f = b2x1 + e2   wage-offer home
    ys1= b3x2 + e3   participating in labour market if ys1>0
    ys2= b4x2 + e4   migrate if ys2>0
with (e1,e2,e3,e4) distributed multivariate normal.

Am I correct? This is similar in spirit to Heckman and Sedlacek (1986) 
model of static sectoral choice. It has been estimated by Nielsen and 
Westergaard-Nielsen (2001?) and Paul Glewwe (1999) in his book on 
school quality in Ghana.

I estimated such a model in my MA thesis on return to human capital in 
rural Pakistan, and have coded it for Stata's ML command if your are 
interested.

Best regards,
Erik

--
Erik �. S�rensen,  <http://www.geocities.com/erik_oiolf/>
phd student economics, Norwegian School of Economics
visiting Queen's University

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